step#1 = Print $ to give to PPT step#2 = Buy futures to prop indexes step#3 = Don't worry as stocks get dumped because at least indexes stay up step#4 = Announce new "Treasury Auction" to recoup funds given to PPT repeat
stocks in the index's can't diverge from the futures. THe arb players already keep them in line. (ie if fair value falls too far on the stocks arbs buy the stocks and sell the futures and vice versa). So if you look at stocks as whole versus stocks that ARE in major indexes, you'll note that they are fairing MUCH MUCH worse. This lends credence, since its not noname inc getting pumped, its Dow, S&P etc, meaning indexes go sideways but non-index stocks go into downtrends. Most interestingly, if you study the price movement of stocks before and after they are added to major indexes you'll see that the 'behave' differently. (as well as removed).
while you are doing all that thinking you should know that every share of stock can be traced to an owner. why hasnt some smart young reporter traced some stocks to the government vault and exposed the ppt for the world to see? i agree that there is a vested interest in the market going up but that is not the same as the government buying stocks to prop up the market as you suggest.
And who is to say that the major I-banks arent a major part of the process. After all, remember the closed door meetings in Sept-Oct 1998 regarding LTCM. Now, more than ever, strong buying or selling at key technical levels can reverse the markets for extended periods of time. The amount of leverage in the markets can sustain a prolonged move in whichever direction is necessary to alleviate, in this case, the selling pressure. Seriously, if you've been trading, at a minimum, 8-10 years you have seen everything. Pre-emptive rate cuts, Federal Reserve member "jawboning", etc, etc. Senor Zen
Oh the ppt is real. Here is the executive order that created it http://www.archives.gov/federal_register/codification/executive_order/12631.html
Do you think the government would even care if it lost money???? Just like the day that oil hit all time highs just happened to be the vote on ANWR? Dumb luck! Just like there has not been one single code orange terror alert since Bush was re-elected. Very interesting! And don't even get me going on about aliens.
Here is a thought, you people ask where is the gov keeping all the securites they buy to prop the market? They don't they just create the squeeze and sell into strength back to shorts. I never believed in the ppt until april 4 of 2000 when we had that day where the nas was down over 12% intraday and came back to close only down 2% for the day. You have not lived until you have traded a day like this and watch your account go -25k and end up closing 12k in the green.